3. bank cross buying.pdf

5www.palgrave-journals.com/fsm

2008 Palgrave Macmillan Ltd 1363-0539 $30.00 Vol. 13, 1 516 Journal of Financial Services Marketing

INTRODUCTION Relationship banking, which entails customers satisfying most of their fi nancial needs with a single provider, 1,2 is fast

* Correspondence: 25 Panepistimiou Str.,10564 Athens, Greece.Tel: + 30 210 3298027;Fax: + 30 210 3298646;e-mail: [email protected]

becoming the fundamental success factor 3 in the fi nancial services market. The change from transactional to relationship banking has been stimulated by a number of driving forces, 4 among which are the increasing sophistication of customers, the high level of market dynamism, the intensity of competition, and disintermediation. 5 At the same time, banks core businesses of money

Analysis Papers Factors that affect consumers cross-buying intention: A model for nancial services Received (in revised form): 8th February, 2008

Magdalini Soureli * works for the Marketing Department of ATEbank. She holds a BSc in Marketing from Athens University of Economics and Business, an MSc in Marketing from UMIST (UK) and she recently graduated from the University of Manchester (UK), where she nished her PhD in Management Studies. She has already published a number of articles in Journal of Consumer Behaviour, Journal of Financial Services Marketing, and Managing Service Quality and she has been an active presenter at several conferences.

Barbara R. Lewis has been Professor of Marketing in the Manchester Business School, University of Manchester. She obtained a BSc from Manchester University, an SM degree from the Sloan School of Management at MIT and her PhD from Manchester. Her teaching and research interests focus on marketing in service sector industries. She has particular expertise in issues relating to customer service and service quality. She has published over 100 journal articles and conference papers and has served on the editorial boards of several prominent journals.

Kalipso M. Karantinou (PhD, University of Manchester) is Associate Professor of Marketing at the Graduate School of the American College of Greece. Before taking up this post she was Lecturer in Marketing at the University of Manchester. Her main research interests are in professional and banking services and relationship management. She has published in the Journal of Marketing Management , the Journal of Services Marketing , the Journal of Customer Behavior, and the Marketing Management Journal , among others.

Abstract Cross-buying behaviour in retail banking is receiving increasing research attention. Most studies on relationship development however revolve around relationship depth and length, while there has been hardly any work on the factors that affect relationship breadth. This research proposes and subsequently tests through structural equation modelling a model of factors that affect customers intention of cross-buying retail nancial services. The study yielded rich research results. Most notably, it demonstrated the centrality of image and trust in the formation of cross-buying intention and also showed that customers cross-buying intention is formed by a combination of interrelationships among the four variables in the model, which should all act simultaneously. Journal of Financial Services Marketing (2008) 13, 5 16. doi: 10.1057/fsm.2008.1 Keywords nancial services , cross-buying , research model

Soureli, Lewis and Karantinou

Journal of Financial Services Marketing Vol. 13, 1 516 2008 Palgrave Macmillan Ltd 1363-0539 $30.006

transmission and lending have become less profi table. Factors such as rising operating costs, reduced levels of consumer spending, narrowing lending spreads, market saturation, and adverse market conditions, all result in lower profi ts for fi nancial institutions, which are being forced to rethink their marketing strategies. 1,6

Under these conditions, fi nancial providers are concentrating their efforts on the development of relationships with their customers. 7 Relationship development efforts aim to increase the length, depth and breadth of relationships. 8 The length refers to the duration of the relationship, 9 the repurchase of the service, or else customer retention; 10 the relationship depth refers to the level of service usage, that is, how much customers use the service; 10,11 while relationship breadth has to do with the number of services from the same provider that the customer acquires / uses (cross-buying). Banks try to stimulate relationship length and depth and are particularly focusing on cross-selling, in an effort to increase the breadth of the relationship with each customer, that is, the average number of services sold to each individual. 12,13

Understanding the motivations of consumers that lead them to reduce their market choices and engage in a relationship with an organisation is therefore important both for practitioners, in order to manage their relationship development efforts better, and academics, in order to develop an effective theory of relationship marketing. 14 Especially in the context of fi nancial services, which are high in credence qualities, resulting in increased uncertainly, higher levels of perceived risk, and higher proclivity for relationship development, there is a need for conceptual frameworks on the nature and determinants of relationships. 15

Extant literature focuses on relationship depth and length, but little research has been carried out to examine the factors that make customers buy additional services from the same provider. 16 Many researchers, such as

Beatty et al ., 17 Hallowell, 18 Bolton, 9 Gwinner et al ., 19 and Selnes, 20 studied the antecedents of customer retention and relationship duration, while others (see Goode et al ., 21 Hallowell, 18 Van den Poel and Leunis, 22 Bolton and Lemon, 11 ) only examined the factors that affect the full use of a service. Far fewer studies (such as Bolton et al ., 8 Ngobo, 23 ) deal with the cross-buying construct. The question of why customers decide to cross-purchase and enhance their relationship with the fi rm has not been adequately investigated in the literature. 23 Most importantly, the majority of previous studies have only implied the relationship between potential factors and cross-buying: there have been hardly any established links confi rmed by research data. There is therefore a signifi cant gap in our understanding of the factors that drive cross-buying behaviour, necessitating further evidence and conceptualisations in this area. 16

The purpose of this study is to address this research gap by developing and testing a research model that combines some of the key variables that have been suggested in previous studies to impact the intention of cross-buying fi nancial services, providing statistical evidence for both the relationships between these variables and cross-buying intention and the relationships among these variables. The selected context for this study is retail banking. Structural equation modelling is used for the analysis of the data collected via a survey of retail bank customers to test the proposed model. This was considered to be the optimum method of analysis, as it enabled the test of several dependence relationships simultaneously, 24 considering simultaneous equations with many endogenous variables. 25 Other multivariate methods of analysis could examine only one relationship at a time and use a limited number of variables. 24,26

The rest of the paper is organised as follows. Extant literature on the factors that affect cross-buying intention, directly or indirectly, is reviewed to identify the key

Factors that affect consumers cross-buying intention

2008 Palgrave Macmillan Ltd 1363-0539 $30.00 Vol. 13, 1 516 Journal of Financial Services Marketing 7

constructs related to cross-buying. The proposed research model is presented next, followed by the methodology employed to test it. The results are subsequently presented and analysed. The paper concludes with the discussion of the implications of the study.

CROSS-BUYING IN FINANCIAL SERVICES

Cross-buying behaviour is expressed as the number of different products bought / owned through the same provider. 27,28 It is complementary to cross-selling, which pertains to the supplier s efforts to increase the number of products or services that a customer uses within a fi rm, 29 In fact, cross-selling and its benefi ts can only be achieved if consumers are willing to cross-buy. 30 Verhoef et al . 27 were the fi rst who introduced the term cross-buying in their 2001 study, defi ning it as the number of different services bought from the same provider (breadth of the relationship).

Cross-selling focuses on the supplier s intentions and practices to interest the buyer in additional products or services from their product / service range. Cross-buying looks at the customer and refers to the customer s practice or intention of buying additional products and services from the existing service provider in addition to the ones s / he already has. 23 Customers may reject cross-buying offers because they do not want to be tied to one single service provider for a long time. 23 There are also customers who prefer to buy from a number of different fi nancial service providers rather than to rely on one single provider, in an effort to spread their business, to diversify their risk, and to feel more secure. 31 33 Even so, there are also customers who demand several products from one single outlet. 34 According to Coughlan 35 and Ngobo 23 the key drivers of cross-buying are associated with the benefi ts of one-stop shopping.

A number of factors, which may affect bank customers cross-buying decisions, have been proposed in previous research studies.

Crosby et al . 27 focused on the customers perceptions of salespersons attributes and examined how these impact account penetration, customer retention, and cross-selling. The results showed that the salespersons image, or else the customer s perceptions of a salesperson s similarity and service domain expertise, is directly related to high overall sales volume, the number of different products owned per customer, and customer retention. Crosby et al . 27 however, examined only the impact of perceived employees attributes and behaviours on cross-sales.

Storbacka et al . 36 suggested a dynamic approach to relationship quality and developed a conceptual framework that incorporates the concepts of perceived value, customer satisfaction, relationship strength, relationship longevity, and relationship profi tability. According to their model, customer satisfaction infl uences positively the strength of the relationship with respect to both purchase and communication behaviour. Relationship strength affects customers perception of alternatives, their perception of critical episodes, and relationship longevity, which then impacts cross-buying. Storbacka et al . s 36 study linked a number of different variables together and provided a holistic view of the factors that affect cross-buying and relationship profi tability. Their model was, however, not tested in order to identify which of the hypothesised relationships hold.

Bendapudi and Berry 37 also developed a conceptual framework, which depicts the variables that lead to relationship breadth. According to their model, providers expertise and satisfaction with interactions, result in the development of trust, which in turn infl uences customers dedication to the provider and their willingness to enhance the relationship. Their study, however, does not offer adequate information about the interrelationships, if any, among the variables examined. Furthermore, the level of impact each variable has on trust, dedication, and enhancement could not be clarifi ed.



Verhoef et al . 38 examined the effect of relational factors, such as, trust and noneconomic satisfaction, on relationship performance. They did not fi nd a signifi cant effect of trust, and only reported on a small positive effect of noneconomic satisfaction, on contribution margin. Their study, however, examined the infl uence of relational factors on contribution margin, which may only be indirectly related to cross-buying behaviour. No evidence on the specifi c relationship between trust and cross-buying intention could be provided.

Bolton et al . 10 examined the effect of satisfaction and payment equity on the length and depth of the relationship. They suggested that customers consider their evaluation of the service quality provided and the price of the service and decide to repurchase, based on their prior intentions or behaviour, reinforced by comparisons with competing offers. The research results showed that perceived fairness, infl uenced by comparison to competition, is important in determining the length and depth of a relationship. The study, however, only examined the effect of payment equity on the length and the depth of the relationship and not on relationship breadth (cross-buying).

Verhoef et al . 28 investigated how satisfaction and payment equity, defi ned as the perceived fairness of the price, affect cross-buying, taking into account competitors performance on these factors. According to their fi ndings, the positive effect of satisfaction on cross-buying is increased by relationship length, while satisfaction may have a negative effect for customers in the beginning of their relationships, in that high satisfaction scores in the early phases of the relationship generate high expectations that are diffi cult to meet. Moreover, payment equity has a negative effect on service additions indicating that low prices of currently held service products do not automatically result in cross-buying. Overall, Verhoef et al . 28 examined a number of factors that relate to customers cross-buying

behaviour and provided useful insights. Even so, the analysis performed was a longitudinal one using archival data and measured cross-buying as the difference in the number of services purchased within a specifi c time period.

Verhoef et al . 39 constructed a conceptual framework looking at the effect of trust, satisfaction, and payment equity on cross-buying. According to their framework, the number of different services purchased from a multiservice provider are affected by trust, satisfaction, and payment equity, with the duration of the relationship acting as a moderating variable. They found that payment equity have a signifi cant positive effect on the number of services purchased. Trust, however, was not found to be important with respect to cross-buying. A criticism of this study refers to the fact that Verhoef et al . 39 only dealt with the impact of each construct on the number of services purchased, without considering the effect of the interrelationships between the constructs on cross-buying.

Bloemer et al . 40 examined how customer satisfaction impacts on defection with respect to customers intention of concentrating more of their banking activities with other banking institutions in the future. According to their research fi ndings, satisfi ed customers are more likely to concentrate their business with one bank and to respond to cross-selling efforts. Bloemer et al . 40 confi rmed that satisfaction is related to cross-buying intention but their study and their contribution were limited to this.

Ngobo 23 considered the impact of customers evaluations of service experiences, and customers perceptions of the provider s capabilities to offer different types of services on cross-buying behaviour. Their results indicated that customers cross-buying intentions are primarily related to image confl icts about the provider s abilities to deliver different services of equally high quality. Ngobo 23 managed to examine several aspects of cross-buying behaviour, and



provided relevant evidence, but he did not try to address the infl uence of relational constructs, such as trust, on cross-buying intentions.

Overall, synthesising these research propositions and results, there seem to be four key variables that may impact cross-buying intention: satisfaction, payment equity, trust, and image. The majority of the above studies have only implied the relationships between these variables and cross-buying, without providing research evidence for the suggested relationships. Even those few cases where these relationships are actually examined, they include research models that fail to combine all four variables mentioned above. This realisation points to the opportunity to further explore and provide insight into the relationships between particular variables and cross-buying intention.

RESEARCH PROPOSITIONS AND THE RESEARCH MODEL Along these lines, the main research aim guiding the investigation was to identify some of the key variables that impact simultaneously customers intention of cross-buying retail fi nancial services and to examine how these variables interrelate. The objectives of this research were:

To develop a research model based on previous research studies in the banking industry. To test this model in the Greek retail bank market, to predict customers cross-buying intention. To examine whether or not the model hypotheses are confi rmed, identify possible causes for disconfi rmation, and provide implications for further research.

The research model of this study was therefore developed, based on the identifi ed research gaps and combined four important factors of cross-buying: satisfaction, value,

image, and trust, as these were identifi ed in extant literature. A number of research propositions were formed:

Satisfaction with the bank positively affects customers cross-buying intention. Satisfaction with the service provider has been the main focus of managers who want to retain their customers. 28 Several researchers have found a positive direct or indirect infl uence of satisfaction with the bank on customers cross-buying behaviour. 23,28,40 Customers should be satisfi ed with the bank and its services in order to consider it for additional purchases. Perceived value positively affects customers cross-buying intention. Perceived value has been considered in a number of studies 10,36,39 and has been found to impact loyalty behaviour related to relationship maintenance and relationship depth. 10 Customers who perceive that their bank offers them good value intend to buy additional products from that bank. Perceived image of the bank positively affects customers cross-buying intention. As fi nancial services are increasingly considered as commodities and the differences between fi nancial services providers diminish, 41 the image of the service provider may play an important role in customers intention of buying additional fi nancial services (as suggested by Crosby et al . 27 Bendapudi and Berry 37 ). Image confl icts about the provider s ability to deliver equally high-quality service in various, different service activities is found to be one of the most important factors impacting cross-buying. 23 Trust in the bank positively affects customers cross-buying intention. Trust has been considered to have a benefi cial infl uence on the development of positive customer attitudes, intentions, and behaviour. More specifi cally, Bendapudi and Berry 37 and Crosby et al . 27 have found a positive infl uence of trust on cross-buying intention.



These four variables are suggested to impact cross-buying but also interrelate with each other, forming a network of relationships between variables. As a result, a complementary set of research propositions are integrated into the research model:

Perceived value positively affects customers satisfaction with the bank Satisfaction with the bank positively affects perceived image of the bank Satisfaction with the bank positively affects trust in the bank.

The above propositions have been generated both from logical reasoning and the qualitative research results, as well as from fi ndings of previous research studies. Particularly, Bolton and Lemon 11 Storbacka et al . 36 and Ngobo 23 found that perceived value impacts on satisfaction, while Nguyen and LeBlanc 42 found that satisfaction infl uences image. Furthermore, Bendapudi and Berry 37 and Selnes 20 have provided evidence that satisfaction has a positive impact on customers trust in the bank.

The diagrammatic research model in Figure 1 illustrates and explains the proposed effects of the key factors and the interrelations between these factors. This model serves as the basis for this study; the hypotheses development, the measurement development, the structural equation modelling, and the data analysis are all based on this research model.

DESIGN OF THE STUDY In order to test the research model in the Greek retail bank market, a structured survey questionnaire was designed. The questionnaire

was initially developed based on previous research instruments measuring the specifi c model variables. Moreover, the fi nalisation of the questionnaire was enabled by means of qualitative research. In-depth personal interviews were carried out with fi ve bank managers, ten bank employees and nine bank customers, so that a holistic view of the research problem could be obtained. The aims of the qualitative study were to gather information from different types of respondents, to offer greater insight into the key variables that impact customers cross-buying intention, and to contribute to the survey questionnaire design. Participants were asked to share their views and experience on cross-selling efforts and cross-buying behaviour issues. A common set of the most important variables to drive customers cross-buying intention could be identifi ed. The factors that managers, employees, and customers highlighted as key drivers for cross-buying refer to satisfaction with the bank, trust in the bank, perceived image of the bank, and perceived value, among others.

Quantitative data collection was achieved via self-administration of the questionnaire within two branches of a major bank and street interviewing outside eight branches of fi ve different banks. In the fi rst case, bank customers completed the questionnaire and returned it to a bank employee. In the second case, bank customers were interviewed as they were leaving the bank branch. A nonprobability, quota sample was used for convenience reasons: this was based on age and gender of respondents, in accordance with the proportional distribution in the target population. Quotas were established in order to reduce the high possibility of sampling error, which characterises nonprobability sampling, and to obtain fairly accurate results with respect to the sample representativeness. 43,44 The quotas of population elements were based on the 2001 census of the Greek economic energetic population. 45 316 customers were surveyed and 311 usable questionnaires were returned.

Perceived value Satisfaction Image

Cross-buying intention

Trust in the bank

Figure 1 The research model



Several pilot tests and back translation were performed for the development of the questionnaire. Measurement scales were formed according to previous scales and questionnaire pilot tests. The respondents were asked to state their level of agreement with several statements and fi ve-point Likert scales were used to measure multiple items of variables.

For the measurement of cross-buying intention (CB) , respondents were asked to focus on their main bank. The indicators were adopted from Tam and Wong 46 Foster and Cadogan 47 and Polonsky et al . 30 and referred to intention of buying more products from the main bank (cb1), choosing the main bank for future purchases (cb2), increasing the volume of business with main bank (cb3), and possibility of purchasing an additional product from main bank (cb4).

The measurement items used for perceived value (VAL) were adopted from Bolton and Lemon 11 and Lewis and Soureli 48 and referred to offering the best deposit interest rates (val1), offering the best loan interest rates (val2), and offering competitive terms (val3).

Satisfaction (SAT) was measured using items adopted from Ngobo 23 Jamal and Naser 49 and Tam and Wong 46 The indicators referred to overall satisfaction (sat1), satisfaction from the level of service (sat2), and satisfaction from previous collaboration with the bank (sat3).

The measurement items used for trust (TR) were adopted from the scales of Verhoef et al . 38 Crosby et al . 27 and Verhoef et al . 39 and referred to feeling of dependence on this bank (tr1), bank keeping its promises to customers (tr2), and trust in the bank s integrity and trustworthiness (tr3).

The measurement scale for image (IM) was formed based on items used by Nguyen and LeBlanc 50 and Lewis and Soureli. 48 The indicators that were incorporated referred to better image than that of competitors (im1), good impression of the bank (im2), and high opinion of the bank (im3).

ANALYSIS AND RESULTS

Several methods for data analysis were reviewed, to decide on the most appropriate one for this project. Apart from structural equation modelling, other multivariate methods of analysis can examine only one relationship at a time and use a limited number of variables. 24,26 Even those methods that can examine multiple dependent variables, test only a single relation between the dependent and independent variables. 51 As a result, these methods cannot be applied to test sophisticated theories. 26 Since one of the study s main objectives was to test how several variables simultaneously affect cross-buying intention, the use of structural equation modelling was necessitated. Structural equation modelling combines path models and confi rmatory factor analysis, as it includes both observed variables and latent (unobserved) variables, whether independent or dependent, 26 and its main advantage is the ability to estimate and test relations between variables simultaneously. 52

Confi rmatory factor analysis was performed to examine the scales reliability and validity. The measurement indicators were found to be reliable ( R 2 >0.35) 53 and the calculated scores of Average Variance Extracted (AVE) and Composite Reliability (CR) were above the cut-off points (AVE>0.5, 54 CR>0.6, 24 ), which provided evidence for construct reliability. All scales showed convergent validity ( t -values >1.96), 55 and exhibited discriminant validity, since the confi dence intervals around the correlation estimates between any two factors never included 1.0. 27

The research model was specifi ed in a structural model and tested using the Amos 4.0 software. 56 According to the results, 2 statistics did not show a good fi t of the model. This is, however, expected, according to Schumacker and Lomax, 26 who claim that as the sample size increases over 200, the 2 statistic tends to indicate a signifi cant probability level ( p = 0.000). Since all the



important indicators of the model fi t were above the accepted values, this model was considered to be an acceptable one. Moreover, all the research propositions were supported by the signifi cant path coeffi cients estimated in the model. Specifi cally, trust in the bank was found to positively affect cross-buying intention ( t -value = 2.228, p = 0.026). Satisfaction positively affects image ( t -value = 9.377, p = 0.000), and trust ( t -value = 11.696, p = 0.000). Image positively affects cross-buying intention ( t -value = 2.373, p = 0.018) and value positively affects satisfaction ( t -value = 8.491, p = 0.000).

There were, however, two research propositions that were not confi rmed. These refer to the direct impact of perceived value ( t -value = 0.814, p = 0.416) and satisfaction ( t -value = 0.737, p = 0.461) on cross-buying intention, as these effects were not statistically signifi cant ( p >0.05). Following this fi nding, the estimates for these two relationships in the structural equation model were fi xed to zero for parsimony reasons and the model was re-specifi ed in order to become clearer and less complex. As suggested by Diamantopoulos and Siguaw, 53 the parameters, which exhibited insignifi cant t -values and had signs that did not agree

with the theory, were deleted, in that the two arrows linking value and satisfaction to cross-buying intention were removed from the model. The new structural model (shown in Figure 2 ) was reassessed with respect to its model fi t.

The new analysis confi rmed the good model fi t that was initially assessed. The 2 statistics did not show a good fi t of the model (as expected according to Schumacker and Lomax 26 ), but all the important indicators of the model fi t (with the exception of AGFI) were above the accepted values (see Table 1 ). Moreover, all the research propositions were supported by the signifi cant path coeffi cients estimated in the model. For this reason, the new, re-specifi ed, model was considered to be an acceptable one.

According to the model results, cross-buying intention is directly infl uenced by trust (0.549) and favourable image of the bank (0.214). Moreover, it is indirectly infl uenced by satisfaction (0.621) and perceived value (0.329). Overall, the majority of infl uence comes from satisfaction, which is the variable with the greater total impact in determining cross-buying intention.

Perceived value

VAL1

0.810.86 0.73

VAL2 VAL3 SAT1

0.830.73 0.71

SAT2 SAT3 IM1

0.590.86 0.81

IM2 IM3

TR1

0.72 0.79 0.68

TR2 TR3 CB1

0.66 0.71 0.75

CB2 CB3 CB4

0.73

0.53 0.63

0.21

0.55

0.53 0.70 0.53 0.51 0.75 0.66

0.56 0.540.500.440.460.630.52

0.89

R2=0.28 R2=0.39

R2=0.48R2=0.79

Satisfaction Image

TrustCross-buying

intention

0.66 0.74 0.35

Figure 2 The structural equation model with standardised estimates



It should be noted though that the above fi ndings are valid and reliable with reference only to the specifi c model structure. SEM examines how the observed variance covariance matrix differs from the estimated variance covariance matrix, which is implied by a particular model specifi cation. 57 If one observed variable or arrow or latent variable is removed from the model, and the model is reassessed, different fi ndings may be generated. Moreover, there is the risk of generating sample-specifi c results, which may happen for any of the standard statistical models. 52

CONCLUSIONS AND IMPLICATIONS FOR MANAGERS The overall conclusion of this study is that customers cross-buying intention is not driven by one single factor, but is formed by a combination of interrelationships between several variables, which should all act simultaneously to be effective. The main contribution of this study relates to the development of a new research model, comprising four key variables: image, trust, satisfaction, and perceived value that interrelate with each other and affect either directly or indirectly the cross-buying intention.

Moreover, this study goes on step further from previous research, as it examined four variables that could fall into two categories: those relating to the past history of the relationship with the bank and customers previous experience, such as satisfaction, and perceived value and those relating to the

expectations or anticipations for the future delivery, which refer to the bank s image and trust in the bank. Following this, there may be some further work that could be done to explore these two different variable categories especially because most cross-selling studies focus on relationships past history. This research managed to show that customer expectations about anticipated future relationships are also important.

This model fi lls a research gap that existed concerning strong, organising theoretical frameworks on the key factors leading to cross-buying. No previous study has systematically assessed the relationships between certain variables and cross-buying intention and has provided relevant research evidence. Moreover, many studies have employed research techniques that could not elicit confi rmation for the model data fi t and hypothesis testing results. The study goes one step further than previous academic research, by combining different variables and examining directly the relationships between these variables and customer cross-buying intention, as well as providing statistical evidence of these relationships and their synergies.

Moreover, the study s practical contribution is versatile, as various managerial directions for successful cross-selling are implied. Strategies for persuading current customers to buy additional products should aim at the development of trust between customers and the bank. Bank managers should be aware of the importance of trust and try to inspire it through constant provision of information, transparency in the bank s processes and

Table 1 Summary of t indices of the model

Fit indices 2 p 2 /d.f. ratio

GFI AGFI TLI CFI SRMR RMSEA

Value 218.263 0.000 2.183 0.920 0.892 0.934 0.945 0.0556 0.062 Suggested values

>0.05 < 3 >0.90 >0.90 >0.90 0.95 < 0.080 < 0.070

2 /d.f. ratio < 3, 24 GFI>0.90, AGFI>0.90, TLI>0.90, 51 CFI 0.95, 58 SRMR < 0.08, RMSEA < 0.07 24



charges, delivery of the promises made to customers, reliability in service delivery, and service recovery systems.

The study showed that customers place great importance on the image of their bank and intend to buy additional products from their main bank because they think highly of it. Following this, bank marketers should project an overall positive image of the bank and build a good reputation around the bank s name. Moreover, they should be able to differentiate the bank s image from competition. They should build and preserve an image of integrity and trustworthiness so that customers feel that they can depend on their bank and that their accounts and investments are safe.

Finally, the fi nding that the impact of customers satisfaction with their main bank and perceived value on cross-buying intention is not signifi cant indicates that customers would not cross-buy from their main bank simply because so far they are satisfi ed with it or because the bank offers the most competitive terms. In fact, when trust is developed between the customer and the bank and the bank enjoys a favourable image, the role of satisfaction and value in generating additional sales is secondary and not so important. This, however, does not mean that bank managers should not try to keep their customers delighted or be competitive in terms of their interest rates. Customers may intend to buy more from their bank when they trust it and think highly of it, but only if this is always accompanied by customers satisfaction with that bank, which in turn is signifi cantly affected by the value that customers perceive that the bank offers. This is why bank managers should offer value for customers money and, most importantly, make their customers believe that their bank has the most competitive deposit and loan interest rates and the fairest charges, even if it does not. In addition, they should ensure that customers are constantly satisfi ed and the bank s service meets their expectations.

In conclusion, the current study attempted to explore and examine some key variables infl uencing customers intention to buy additional products from the same bank. A research model was developed, tested, and shown to be valid. This model explains part of customers cross-buying intention and can be used in future studies of other industries, enriched with other variables and compared to other models, so that further statistical support can be found.

REFERENCES

1 Berry , L . L . , Futrell , C . M . and Bowers , M . R . ( 1985 ) Bankers Who Sell: Improving Selling Effectiveness in Banking , Dow Jones-Irwin, Homewood, IL .

2 Bird , A . and Bradshaw , S . J . ( 1996 ) Creating a relationship-based sales culture (managing the transition from savings and loan association to commercial bank) , American Banker , Vol. 161 , No. 102 , p. 9 .

3 Letourneau , T . ( 1997 ) Surviving and thriving in a sales culture , Bank Marketing , Vol. 29 , No. 7 , p. 104 .

4 Richardson , L . ( 1992 ) Bankers in the Selling Role , 2nd edn, John Wiley & Sons, USA .

5 Crosby , L . A . ( 2002 ) Exploding some myths about customer relationship management , Managing Service Quality , Vol. 12 , No. 5 , pp. 271 277 .

6 Harrison , T . S . ( 1994 ) Mapping customer segments for personal fi nancial services , International Journal of Bank Marketing , Vol. 12 , No. 8 , pp. 17 25 .

7 Ennew , C . T . and Waite , N . ( 2007 ) Financial Services Marketing , Butterworth-Heinemann, Oxford, UK .

8 Bolton , R . N . , Lemon , K . N . and Verhoef , P . C . ( 2004 ) The theoretical underpinnings of customer asset management: A framework and propositions for future research , Journal of the Academy of Marketing Science , Vol. 32 , No. 3 , pp. 271 293 .

9 Bolton , R . N . ( 1998 ) A dynamic model of the duration of the customers relationship with a continuous service provider: The role of satisfaction , Marketing Science , Vol. 17 , No. 1 , pp. 45 65 .

10 Bolton , R . N . , Kannan , P . K . and Bramlett , M . D . ( 2000 ) Implications of loyalty program membership and service expreiences for customer retention and value , Journal of the Academy of Marketing Science , Vol. 28 , No. 1 , pp. 95 108 .

11 Bolton , R . N . and Lemon , K . N . ( 1999 ) A dynamic model of customers usage of services: Usage as an antecedent and consequence of satisfaction , Journal of Marketing Research , Vol. 36 , pp. 171 186 .

12 Aksin , O . Z . and Harker , P . T . ( 1999 ) To sell or not to sell Determining the trade-offs between service and sales in retail banking phone centres , Journal of Service Research , Vol. 2 , No. 1 , pp. 19 33 .

13 Jarrar , Y . F . and Neely , A . ( 2002 ) Cross-selling in the fi nancial sector: Customer profi tability is key , Journal of Targeting, Measurement and Analysis for Marketing , Vol. 10 , No. 3 , pp. 282 297 .



14 Sheth , J . N . and Parvatiyar , A . ( 1995 ) Relationship marketing in consumer markets: Antecedents and consequences , Journal of the Academy of Marketing Science , Vol. 23 , No. 4 , pp. 255 271 .

15 Sharma , N . and Patterson , P . G . ( 1999 ) The impact of communication effectiveness and service quality on relationship commitment in consumer, professional services , The Journal of Services Marketing , Vol. 13 , No. 2 , pp. 151 170 .

16 Reinartz , W . J . and Kumar , V . ( 2003 ) The impact of customer relationship characteristics on profi table lifetime duration , Journal of Marketing , Vol. 67 , pp. 77 99 .

17 Beatty , S . E . , Mayer , M . , Coleman , J . E . , Reynolds , K . E . and Lee , J . ( 1996 ) Customer sales associate retail relationships , Journal of Retailing , Vol. 72 , No. 3 , pp. 223 247 .

18 Hallowell , R . ( 1996 ) The relationships of customer satisfaction, customer loyalty, and profi tability: An empirical study , International Journal of Service Industry Management , Vol. 7 , No. 4 , pp. 27 42 .

19 Gwinner , K . P . , Gremler , D . D . and Bitner , M . J . ( 1998 ) Relationship benefi ts in services industries: The customers perspective , Journal of the Academy of Marketing Science , Vol. 26 , No. 2 , pp. 101 114 .

20 Selnes , F . ( 1998 ) Antecedents and consequences of trust and satisfaction in buyer seller relationships , European Journal of Marketing , Vol. 32 , No. 3/4 , pp. 305 322 .

21 Goode , M . M . H . , Moutinho , L . A . and Chien , C . ( 1996 ) Structural equation modelling of overall satisfaction and full use of services for ATMs , International Journal of Bank Marketing , Vol. 14 , No. 7 , pp. 4 11 .

22 Van den Poel , D . and Leunis , J . ( 1998 ) Database marketing modelling for fi nancial services using hazard rate models , The International Review of Retail, Distribution and Consumer Research , Vol. 8 , No. 2 , pp. 243 257 .

23 Ngobo , P . V . ( 2004 ) Drivers of customers cross-buying intentions , European Journal of Marketing , Vol. 38 , No. 9/10 , pp. 1129 1157 .

24 Hair , J . F . , Black , W . C . , Babin , B . J . , Anderson , R . E . and Tatham , R . L . ( 2006 ) Multivariate Data Analysis , 6th edn, Pearson-Prentice-Hall, New Jersey .

25 Bollen , K . A . and Long , J . S . ( 1992 ) Tests for structural equation models , Sociological Methods and Research , Vol. 21 , No. 2 , pp. 123 131 .

26 Schumacker , R . E . and Lomax , R . G . ( 2004 ) A Beginners Guide to Structural Equation Modeling , 2nd edn, Lawrence Erlbaum Associates, New Jersey .

27 Crosby , L . A . , Evans , K . R . and Cowles , D . ( 1990 ) Relationship Quality in services selling: An interpersonal infl uence perspective , Journal of Marketing , Vol. 54 , pp. 68 81 .

28 Verhoef , P . C . , Franses , F . H . and Hoekstra , J . C . ( 2001 ) The impact of satisfaction and payment equity on cross-buying: A dynamic model for a multi-service provider , Journal of Retailing , Vol. 77 , pp. 359 378 .

29 Kamakura , W . A . , Wedel , M . , de Rosa , F . and Mazzon , J . A . ( 2003 ) Cross-selling through database marketing: A mixed data factor analyzer for data augmentation and prediction , International Journal of Research in Marketing , Vol. 600 , pp. 1 21 .

30 Polonsky , M . J . , Cameron , H . , Halstead , S . , Ratcliffe , A . , Stilo , P . and Watt , G . ( 2000 ) Exploring companion selling:

Does the situation affect customers perceptions? International Journal of Retail & Distribution Management , Vol. 28 , No. 1 , pp. 37 45 .

31 Ennew , C . and Hartley , M . ( 1996 ) Financial advisers and savings and investment products , in Buttle, F. (ed) Relationship Marketing: Theory and Practice , Chapman, London .

32 Burand , C . ( 2001 ) Beware the pitfalls of cross-selling , National Underwriter (Property & Casualty/Risk & Benefi ts Management Edition , Vol. 105 No. 38 , p. 19 .

33 Green , P . L . ( 2002 ) Non-stop growth in one-stop banking , Global Finance , Vol. 16 , No. 3 , p. 35 .

34 Bergendahl , G . ( 1995 ) The profi tability of bancassurance for European banks , International Journal of Bank Marketing , Vol. 13 , No. 1 , pp. 17 28 .

35 Coughlan , A . T . ( 1987 ) Distribution channel choice in a market with complementary goods , International Journal of Research in Marketing , Vol. 4 , No. 2 , pp. 85 97 .

36 Storbacka , K . , Strandvik , T . and Gr nroos , C . ( 1994 ) Managing customer relationships for profi t: The dynamics of relationship quality , International Journal of Service Industry Management , Vol. 5 , No. 5 , pp. 21 38 .

37 Bendapudi , N . and Berry , L . L . ( 1997 ) Customers motivations for maintaining relationships with service providers , Journal of Retailing , Vol. 73 , No. 1 , pp. 15 37 .

38 Verhoef , P . C . , Franses , P . H . and Hoekstra , J . C . ( 2000 ) The effect of relational constructs on relationship performance: Does duration matter? ERIM Report Series Research In Management, ERS-2000-08-MKT, Erasmus Universiteit, Rotterdam .

39 Verhoef , P . C . , Frances , P . H . and Hoekstra , J . C . ( 2002 ) The effect of relational constructs on customer referrals and number of services purchased from a multiservice provider: Does age of relationship matter? Journal of the Academy of Marketing Science , Vol. 30 , No. 3 , pp. 202 216 .

40 Bloemer , J . , Brijs , T . , Swinnen , G . and Vanhoof , K . ( 2002 ) Identifying latently dissatisfi ed customers and measures for dissatisfaction management , International Journal of Bank Marketing , Vol. 20 , No. 1 , pp. 27 37 .

41 Saunders , J . and Watters , R . ( 1993 ) Branding fi nancial services , International Journal of Bank Marketing , Vol. 11 , No. 6 , pp. 32 38 .

42 Nguyen , N . and LeBlanc , G . ( 1998 ) The mediating role of corporate image on customers retention decisions: An investigation in fi nancial services , International Journal of Bank Marketing , Vol. 16 , No. 2 , pp. 52 65 .

43 Aaker , D . , Kumar , V . and Day , G . ( 1998 ) Marketing Research , 6th edn, John Wiley & Sons Inc., New York .

44 Chisnall , P . ( 2001 ) Marketing Research , 6th edn, McGraw-Hill, England .

45 http://www.statistics.gr . 46 Tam , J . L . M . and Wong , Y . H . ( 2001 ) Interactive selling:

A dynamic framework for services , Journal of Services Marketing , Vol. 15 , No. 5 , pp. 379 396 .

47 Foster , B . D . and Cadogan , J . W . ( 2000 ) Relationship selling and customer loyalty: An empirical investigation , Marketing Intelligence and Planning , Vol. 18 , No. 4 , pp. 185 199 .

48 Lewis , B . R . and Soureli , M . ( 2006 ) The antecedents of consumer loyalty in retail banking , Journal of Consumer Behaviour , Vol. 5 , pp. 15 31 .



49 Jamal , A . and Naser , K . ( 2002 ) Customer satisfaction and retail banking: An assessment of some of the key antecedents of customer satisfaction in retail banking , International Journal of Bank Marketing , Vol. 20 , No. 4 , pp. 146 160 .

50 Nguyen , N . and Leblanc , G . ( 2001 ) Corporate image and corporate reputation in customers retention decisions in services , Journal of Retailing and Consumer Services , Vol. 8 , pp. 227 236 .

51 Hair , J . F . , Black , W . C . , Babin , B . J . , Anderson , R . E . and Tatham , R . L . ( 1995 ) Multivariate Data Analysis: With readings , Prentice-Hall, Englewood Cliffs, London .

52 Hoyle , R . H . ( 1995 ) The structural equation modeling approach: Basic concepts and fundamental issues , in Hoyle R. H. (ed) Structural Equation Modeling: Concepts, Issues and Applications , Sage Publications, Thousand Oaks .

53 Diamantopoulos , A . and Siguaw , J . A . ( 2000 ) Introducing LISREL , Sage Publications, London .

54 Fornell , C . and Larcker , D . F . ( 1981 ) Evaluating structural equation models with unobservable variables and measurement error , Journal of Marketing Research , Vol. 18 , pp. 39 50 .

55 Steenkamp , J . -B . E . M . and van Trijp , H . C . M . ( 1991 ) The use of LISREL in validating marketing constructs , International Journal of Research in Marketing , Vol. 8 , pp. 283 299 .

56 Arbuckle , J . L . and Wothke , W . ( 1999 ) AMOS 4.0 Users Guide , SmallWaters Corporation, Chicago .

57 Baumgartner , H . and Homburg , C . ( 1996 ) Applications of structural equation modeling in marketing and consumer research: A review , International Journal of Research in Marketing , Vol. 13 , pp. 139 161 .

58 Hu , L . and Bentler , P . M . ( 1999 ) Cutoff criteria for fi t indexes in covariance structure analysis: Conventional criteria versus new alternatives , Structural Equation Modelling , Vol. 6 , pp. 1 55 .

3. bank cross buying.pdf

Documents